Tax day is just around the corner: The filing deadline for your 2016 individual income tax return is April 18. If you need more time to prepare your return – whether you are busy with school, travel, a family emergency, or you are simply disorganized – you can request a six-month filing extension by submitting the proper form to the U.S. Internal Revenue Service. Of course, there's a deadline for that too, but the good news is that getting an extension is easier than you might think. Here's what you need to know – from dates and forms, to special rules.
If you need an extension of time to file your 2016 individual income tax return, you must file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, no later than April 18, 2017 (fiscal year taxpayers must file by the original due date of the fiscal year return). Requesting an extension is free and relatively simple, and it can be done either electronically or on paper.
Either way, you will fill out identification information (your name, address, Social Security number and your spouse's Social Security number) and your individual income tax information (estimate of total tax liability for 2016, total payments you've already made, the balance due and the amount you are paying). There are also check boxes to indicate if you are a U.S. citizen or resident who is out of the country, and if you file Form 1040NR or 1040NR-EZ.
Like other tax forms, Form 4868 is available on the IRS website. Visit the Forms & Publications section for a list of frequently downloaded forms and publications, including Form 4868. You can get the extension either electronically (by accessing IRS e-file) or by paper.
Important Note: If you downloaded Form 4868 before Jan. 4, 2014 , or have an old printed form, there are two address changes. If you are mailing Form 4868 and making a payment AND you live in Connecticut, Delaware, District of Columbia, Maine. Maryland, Massachusetts, Missouri, New Hampshire, New York, Pennsylvania, Rhode Island, Vermont or West Virginia, the correct address to send your form and payment is:
Internal Revenue Service
If you are not making a payment AND you live in Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota or Wisconsin, send your form to:
Department of the Treasury
IRS E-File is the IRS's electronic filing program, which allows you to send in tax forms, including Form 4868, directly to IRS computers. You can get an automatic extension to file your tax return by filing Form 4868 electronically through IRS e-file on your own (from your personal computer, using free or commercial tax software) or with the help of a tax professional who uses e-file. You will receive an electronic acknowledgment you can keep with your tax records.
If your adjusted gross income (AGI) for 2016 was $64,000 or less, you can use brand-name software at no cost from Free File – a free service that provides taxpayers with free federal tax preparation and e-file options. This is a partnership between the IRS and commercial tax software companies. If your income is above the $64,000 threshold, you can use the IRS' own Fillable Forms tool.
Filing by Mail
As an alternative to filing electronically, you can file a paper Form 4868. You can download the form from the IRS website, or request to have a paper form mailed to you (for free) by filling out an order form on the IRS website. Alternatively, you can call the IRS at 1-800-829-3676 to order a form.
Note: If you are a fiscal year taxpayer, you'll have to file a paper Form 4868.
More Time to File, Not More Time to Pay
It's important to remember that the automatic extension gives you more time to file – not more time to pay. To avoid paying penalties and interest, you still have to pay your taxes by the original due date of your tax return (typically April 15, but April 18 for 2016 taxes). If you think you may owe tax when it comes time to file your return, you should estimate how much you will owe and subtract any taxes that you have already paid (for example, through withholding on your paycheck). If your estimate is on the high side and you end up overpaying, you will be able to get a refund when you eventually file your return.
You can pay part or all of your estimated income tax online using a debit or credit card or through an electronic funds transfer using Direct Pay, the Electronic Federal Tax Payment System. Even if you file electronically, you can mail a check or money order to make your tax payment. Make the check or money order payable to "United States Treasury" and include a completed Form 4868 to use as a voucher. You do not need to file a paper Form 4868 if you submitted one electronically and you are not mailing a payment.
Each state has its own requirements for tax extensions. While some states offer automatic six-month extensions to all taxpayers (Alabama, California and Wisconsin, for example), others require you to file out a specific form on or before your return's original due date. Some states do not impose a state income tax, so you would file neither a return nor an extension request in those states.
You can use commercial tax preparation software (see below) to generate the correct, state-specific form, or you can find the form on your state tax authority's website. As with your federal tax return, the state extension serves only to give you more time to file your return – not to pay your taxes. If you can, calculate what you might owe and submit a payment to avoid penalties and interest.
The IRS has two special circumstances under which you can extend the tax deadline.
Out of the Country
You will be allowed an automatic two-month extension to file your return and pay any federal income tax due – without requesting an extension – if you are a U.S. citizen or resident alien and on the regular due date of your return you are:
- Living outside the U.S. and Puerto Rico and your main place of business or post of duty is outside the U.S. and Puerto Rico; or
- On duty outside the U.S. and Puerto Rico for military or naval service.
For your 2016 return, that means you have until June 19, 2017, to file your tax return. You must attach a statement to your return that explains the situation that qualified you for the extension.
The deadline for filing tax returns and paying taxes is automatically extended if:
- You serve in the Armed Forces in a combat zone or you have qualifying service outside of a combat zone; or
- You serve in the Armed Forces on deployment outside the U.S. away from your permanent duty station while participating in a contingency operation.
The extension is 180 days past the later of:
- The last day you are in a combat zone or serving in a contingency operation; or
- The last day of any continuous qualified hospitalization for a service injury from a combat zone or contingency operation.
The Bottom Line
Having extra time to gather, review, prepare and submit your tax return can ease stress and allow you to be more thorough on your return. Requesting an extension is fairly simple, and you do not need to explain to the IRS why you want one. Since most requests are automatically granted, the IRS will contact you only if your request is denied. You can file your tax return any time before the extension expires (typically October 15, but October 16 for 2016 tax extensions), and you do not need to attach a copy of Form 4868 to the return.